Take into consideration what bills your SMSF has to pay and allow enough cash to meet expenses.

Take into consideration when benefits will need to be paid

Consider diversifying your SMSF investments.

Have a separate bank account for your SMSF and pay the expenses of your fund from that bank account only.

Make sure that your fund’s ownership of its investments is assured. The ATO prefers the assets to be in the names of all of the individual trustees as trustees for your fund, or in the case of a corporation trustee, in the name of the company as trustee for your fund. In certain states, legislation may prevent you from holding assets using your fund’s name. In this circumstance, a caveat, instrument of declaration of trust needs to be executed for the asset.

Don’t provide financial assistance to members or relatives of members.

Don’t make investments to help someone else out.

If your SMSF buys art, generally you can not use it privately.

Don’t buy wine as an SMSF investment and then drink it.

Don’t buy jewellery as an SMSF investment and then wear it.

Don’t use any of the assets of your SMSF for your own personal use or allow members or related parties to use those assets.

The ATO has published a number of final and draft rulings and determinations to provide you with guidance on a range of issues for SMSFs. To obtain a copy of these SMSF rulings and determinations, visit the ATO website